In the first quarter of fiscal 2019, the revenues of Arvind Limited, one of the largest textiles, apparel and fashion players, have increased 10 per cent year-on-year. Backed by the strong performance of branded apparel business, the company delivered an impressive EBIIDA growth of 18 per cent. PAT before exception items grew by 13 per cent to Rs. 75 cr.
For the reported period, the company was in joint venture with tier-1 auto supplier for seating and interior fabrics. It co-branded personal protective equipment line with global construction machinery major. It was in a licensing agreement with a European composite player for technology transfer. The power brands namely Arrow, US Polo Association, Flying Machine and Tommy Hilfiger grew by strong by 16 per cent (20 per cent adjusted for GST). Their value retail offering also grew by 20 per cent, Arvind Ltd said in a report.
In the other major segment, i.e. Textiles, the company witnessed an increase in the garment volume by 20 per cent following the verticalisation strategy. The green expansion is underway across three States The company is looking to demerge its Branded Apparel and Engineering businesses into separate companies. This process is progressing as planned and final approvals are expected early in the second quarter.
In fiscal 2019, the branded apparel segment is likely to continue its industry leading over 20 per cent growth momentum and steady margin expansion is expected. Backed by garment expansion and new products, the textiles segment is likely to grow by 10 per cent with improving margins.